| What is an SRA disability withdrawal?
If you have an SRA with TIAA-CREF and/or Fidelity, you may withdraw your accumulations while you are still working for the University if you become disabled. There are no provisions for such a withdrawal for contributions made to the Basic Retirement Plan.
What is the definition of disability?
IRC Section 72(m) defines an individual to be disabled if they are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to be of long-continued and indefinite duration. Individuals applying for a disability withdrawal must provide verification of disability to the Benefits Office.
What if I don’t meet the criteria of being disabled?
Consider taking an SRA loan or review the SRA hardship withdrawal information to determine whether you qualify.
How much can I withdraw?
Your entire SRA accumulations (contributions and earnings) are available for withdrawal.
Is there an IRS penalty for doing so?
No. The IRS 10% early withdrawal penalty for withdrawals made before age 59½ does not apply to disability withdrawals.
Do I have to pay income tax on the withdrawal?
Yes, you will have to pay income tax on the amount you cash out.
Does a disability withdrawal affect my participation in the UM plan?
No. You may continue your participation in the UM Retirement Plan if you take an SRA disability withdrawal.
How do I arrange for an SRA disability withdrawal?
- Contact TIAA-CREF and/or Fidelity and request an SRA Disability Withdrawal application:
- TIAA-CREF ............... 1-800-842-2776
- Fidelity .................... 1-800-343-0860
- Complete your sections of the TIAA-CREF and/or Fidelity SRA Disability Withdrawal application.
- This form includes a section for the Benefits Office to certify that you are disabled. You will need to supply certification of your disability status to the Benefits Office, for example, proof of Social Security disability benefit entitlement.
- Mail, FAX, or drop off the TIAA-CREF and/or Fidelity SRA Disability Withdrawal application and documentation of disability status to the Benefits Office.
University of Michigan Benefits Office
3003 S. State Street
Wolverine Tower G250
Ann Arbor , MI 48109-1281
734-615-2000 Phone
734-615-4007 FAX
- The Benefits Office will complete the employer authorization section on the TIAA-CREF and/or Fidelity SRA Withdrawal application and forward the form to the investment carrier within three working days.
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